The projects range from expansions on existing buildings to developing all-new structures.
Furthermore, the tax breaks ensured Huron kept 107 jobs and created up to 42 new ones.
“Council’s policy to target specific areas for an economic development incentive has directly resulted in a large increase of annual property tax revenues, labor force, community investment payroll income tax receipts and indirect economic activity throughout the area,” Huron city manager Andy White said. The deal
A tax abatement works as such: Executives, entrepreneurs or owners approach Huron officials about a project when seeking to grow their business.
As savvy-minded business people should do, they’re looking for a deal.
Lucky for them, Huron provides tax abatements, or breaks, allowing businesses to forgo paying 100 percent of taxes on new development for a specific period.
The deals last anywhere from five to 15 years. In exchange, a company’s executives must agree to contribute funds to Huron Schools for a specific project.
The five participating businesses in Huron will pledge a total of $1.4 million over 15 years.
“Huron, like all school districts, welcomes additional revenue to support innovative programming and student initiatives,” Huron Schools superintendent Dennis Muratori said.
Once a tax abatement deal ends, a company must pay full taxes on the new development.
The Huron company n2y, for instance, is expected to pay $44,000 in property taxes in 2028, up from $9,000 today.
The educational business specializes in enhancing the lives of people with learning disabilities. The company’s leaders are investing $1.7 million to build and expand their headquarters at Huron’s corporate park.
The company received a tax abatement earlier this year, allowing the expansion to begin.
“We have a great relationship with Huron and wanted to stay,” said Don Wostmann, vice president of operations at n2y. “We are progressing and are one of the only companies in the area that is expanding, and we want to give people jobs here.”
The collective $4.1 million waived in taxes based on new development is revenue that would not have been collected at all if the expansions and new development didn’t occur, White said.
The expansions and new development only came about because each company received a deal.